Smart401k Blog

Despite a year filled with mixed economic news and Washington stalemates, the holiday shopping season kicked off with a bang.

The National Retail Federation reported an increase in total spending of 16% compared with last year, indicating American consumers plan to finish the year strong and take advantage of historic deals on 2011’s hottest items.

One of the hardest things to do this time of year is set a strict spending limit and stick to it. With discounts all over the place, it’s tempting to raid all your accounts to find extra spending money. Credit card debt gets plenty of media attention during the holidays, but alternative loan sources like your 401(k) account deserve some discussion too. And here it is.

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Many people near retirement age are looking for alternative ways to fund part or all of their retirement. One option some have turned to is reverse mortgages. In his weekly submission to the U.S. Smarter Investor Blog series, Scott breaks down what you need to know before you think about securing a reverse mortgage.

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Current economic uncertainty, tight credit standards and a difficult housing market are forcing more and more people to make tough financial decisions.  A study from the Employee Benefit Research Institute stated 34% of workers had reported tapping into savings in order to pay for basic living expenses within the prior twelve months.

Even with so many in need of financial support it was still a shock to read a recent Kansas City Star article stating one in five employees borrowed from their 401(k) in the form of a loan.  A 401(k) plan loan can be a quick solution to short-term cash needs.  However, it is important to understand the risks involved before taking on this type of loan.

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